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Hire Purchase

Are you unsure whether a commercial hire purchase is the right financing vehicle to secure a valuable business asset? Read advice and information from the independent business funding experts.

Hire Purchase

If you wish to purchase an asset and spread the cost over a period of time, you may want to consider hire purchase. Unlike leasing something and having to return it at the end, hire purchase allows you to own the asset outright and upfront without having the money in the bank.

Commercial Mortgage Calculator

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Error: Property must be valued at £50,000 or more.

Error: Estimated rental income must be between £1 and £99,999.

Based on your details, you can borrow up to: £0

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Hire Purchase Mortgage Finance

Your business may need some new vehicles or machinery, but you may not have the ready funds to buy these right away. Your company can also benefit as you may be able to claim tax relief on the commencement of your hire purchase agreement. Hire purchase can help with the expansion of a company that needs new assets in order to achieve further growth.

The repayments and deposit are flexible depending on your business and there are fixed and variable rates to suit. It is often a cheaper way to secure funding for equipment or vehicles than with another type of loan or an overdraft making it an ideal way to help a business grow. The cost can be spread over a long period of three to five years, and is relatively easy to obtain as there is a lower risk for the lender.

You should take into account that if, for any reason, you are unable to make repayments on time, that the lenders could seize the assets that you have taken on hire purchase. However with careful financial planning this can be avoided. In some situations, the asset your company has purchased may depreciate and lose much of its value, so it's well worth doing a bit of homework beforehand on the assets you're intending to purchase.

Mortgage brokers will help you decide whether hire purchase is for you or whether there are other alternatives, such as leasing or lease-purchase, to fit your company's needs. Our experts will assist you through the entire process. Get in touch to find out more.

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